Two bits of news for Level 3 Communications (NYSE:LVLT, news, filings) this week: a high profile contract in the sports vertical and yet another big refinancing.
Level 3 picked up a contract today with the NFL’s Tampa Bay Buccaneers. It’s a multi-year agreement that will bring Level 3 connectivity to both Raymond James Stadium and the club’s headquarters at One Buccaneer Place. The new fiber connectivity and internet access will give them bigger pipes than the team has ever had. Stadium connectivity has been getting more and more attention as smartphones proliferate in the crowds bring both demand and opportunity.
Meanwhile, Level 3 has formally announced the proposed refinancing of its $1.2B senior secured tranche B-II 2019 term loan. They’ve been said to be working on this for at least a month, i.e. since the similar big refinancings they pulled of back in August. This time the company expects to price the refinancing tomorrow and close next week. Good to know Verizon didn’t suck *all* the air out of the debt markets.
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Categories: Financials · Internet Backbones
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On the contrary the pricing talk here Rob is very generous. One source telling me it is going to be a blowout. Bank loan funds have had 67 straight weeks of inflows, L3 is far from the only one at this trough but seeing this thing price with a 50bps lower Libor floor and 25bps off the spread is not shabby work by Sunit. One guy even said, he thinks this thing could even price tighter than the aforementioned terms but that is just hard to believe.
TO DA MOOOOON!
Has anyone heard of any hiring freeze @ L3, either company wide or just in the Northeast? I had been interviewing for a senior sales role w/them and was told of a freeze having just been implemented, possibly through end of the year. Just not sure if that was the case or just a way of saying thanks but no thanks?!
There was a round of restructuring a few weeks back, so a hiring freeze would seem to be directly related. http://www.telecomramblings.com/2013/08/level-3-slims-down-toward-profitability/
Yes, I’ve heard that there is currently a hiring freeze.